7 reasons why every merchant should consider cryptocurrency payments
Cryptocurrency has now become a global phenomenon which is known to most people. A cryptocurrency is a digital currency that is created and managed through the use of advanced encryption techniques known as cryptography. It is a medium of exchange like government-issued currencies that uses cryptography to secure the exchange of digital information and control the creation of new units. It is also known as a crypto asset or crypto money.
Cryptocurrency made the leap from being an academic concept to (virtual) reality with the creation of Bitcoin in 2009. A cryptocurrency is not backed by a government or indeed any single organisation, it is backed only by the ‘miners’ or people who contribute resources to making the distributed ledger system work for the cryptocurrency. At first, it seemed unfamiliar and somewhat scary like the credit card looked to users in its early days.But slowly people started gaining interest in cryptocurrency due to its ultimate benefits. It solved all the problems people had with banks.
Cryptocurrency is the next evolution of money. Bitcoin was the first cryptocurrency which was introduced in 2009.When it was first introduced to the world, each bitcoin was valued at less than $1 for some time. Later its value starting increasing and in the late 2014 one bitcoin was valued over $1000. Though the current price of a bitcoin is half of the value.
Slowly people came to know about the significant returns by investing in cryptocurrency and the crypto market started gaining the attention of spectaculars worldwide, causing great desire to learn how to invest in cryptocurrency and yield returns that beat the stock market.The cryptocurrency market is only less than a decade old and still remains very small in comparison to the global financial markets of the world. The investors should keep in mind the fundamental rule of investing i.e “higher the risk, greater the return, lower the risk, higher the return”
Why should every merchant move to cryptocurrency for payment solutions?
Cryptocurrency sure has some risks and limitations but using crypto in business is a great way to stand apart from other businesses in a marketplace. It is another way businesses can accept payments from the customers or pay the vendors. Using crypto in business depends on various business needs but in most cases, it can be advantageous for many reasons. Some of them are as follows.
- MONEY SAVER
The biggest advantage of using cryptocurrency in business is that it would save a lot of money which can be further invested in other productive things. Being fully decentralised, cryptocurrencies don’t require a bank to verify every transaction. On the other hand, for several years the US merchants have paid over $78 billion in fees related to credit and debit card processing. Using crypto, this heavy fees can be eliminated and around 2-5% on each transaction can be saved. No more sharing your hard-earned revenue with any financial institution.
- QUICK PROCESSING
Using cryptocurrency, transactions can be processed quickly and easily. One doesn’t need to wait for funds to be available in the bank account with crypto transactions which are a huge advantage.In today’s world of instant gratification, where mostly everyone is in hurry and no one likes to wait, crypto payments involve high transaction speed which is appreciated by everyone.
- MERCHANT PROTECTION
In today’s fraudulent world where the everyday huge number of frauds take place, crypto’s decentralised setup protects merchants from fraudulent chargebacks.All the transactions using crypto are final and are added to the blockchain via mining. The funds get verified through this system and it becomes next to impossible to spend more than your own. Crypto payments involve the approval of both the parties which makes it impossible for frauds or chargebacks to happen.
- INCREASED SALES
Cryptocurrency is really advantageous to the merchants as it boosts up the sales as crypto’s decentralised nature enables small businesses to expand and also opens up the doors to international buyers. Many merchants have started using crypto in their businesses and the results are pretty amazing.
- WORLDWIDE ACCEPTANCE
Cryptocurrencies are accepted and used worldwide and have universal recognition. Cryptocurrencies have some major followers- more and more people are now learning about it and embracing it. As the customers become familiar with and begin to use cryptocurrencies, it is surely gonna help the merchants in their business.
6.CATERING TO CONSUMER PREFERENCES
Using cryptocurrency in business offers another advantage by giving the consumers an additional way to pay. Consumers get an extra choice while providing an extra layer of protection to their information. Also, the consumers who don’t know much about cryptocurrency start exploring it and learn about it and get to know the advantages.
7.RID OF PAPER OPTIONS
Using cryptocurrency, paper options are slowly becoming a thing of the past.Digital wallets and cryptocurrencies are growing steadily with the blockchain. This trend continued through 2017 and is anticipated to grow as people become more familiar with the digital currency.
Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.